Question

Rehman invests his summer earnings of

$3050. He invests part of the money at
8%/year, and the rest at 7.5%/year. After
1 year, these investments earn $242 in
simple interest. How much did he invest
at each rate?

Answer 1

Explanation:

let Rehman invests in 8%=$x

simple interest=x*0.08*1=0.08 x

investment in 7.5%=$(3050-x)

simple interest=(3050-x)*0.075*1=228.75-0.075x

total interest=0.080 x+228.75-0.075 x=0.005x+228,75

0.005x+228.75=242

0.005 x=242-228.75

0.005 x=13.25

x=13.25 /0.005=2650

invested at 8%=$2650

invested at 7.5 %=3050-2650=400